A $13 MILLION overhaul of the Marion Hotel, featuring a four-storey accommodation complex as its centrepiece, will aim to capitalise on major investment in the south.

The Hurley Hotel Group has lodged plans with Marion Council to revamp the watering hole, which had its last major renovation 20 years ago.

The redevelopment would feature 64 motel rooms — up from 12 — new bars, function rooms, a beer garden and two dining areas.

Hurley Hotel Group general manager Sam McInnes hoped the revamped Marion Rd pub would gain extra business through competitions at the SA Aquatic & Leisure Centre and major developments planned for the southwest.

An artist's impression of the proposed four-storey accommodation complex at the revamped Marion HotelSource:Supplied

These included the development of the Tonsley innovation precinct and an 850-home, $265 million development in the suburb.

It may also benefit from upgrades at Flinders Medical Centre and a Flinders University ‘village’ with student accommodation, shops, restaurants, and medical businesses planned around a new rail link to the precinct.

“As we’re all shifting further south, people are looking for accommodation in this area,” McInnes said.

The upgrade would help the pub compete with other nearby pubs, including the Warradale Hotel, which had a major revamp in 2012.

Its front bar would be made smaller, making way for extra function and dining space, and a new drive-through bottleshop is also planned.

“It’s a massive bar, but it’s not utilised to the same level it was — it would have been at its peak during the Mitsubishi and Chrysler days,” McInnes said.

“We’re hoping to be a bit busier. We want to attract back the sweet spot, with the 20s-40s.

“We’ll have a traditional dining area and a casual dining area next to the beer garden.”

The group was also conscious of a nationwide decline in alcohol sales.

Mr McInnes said over the past 12 months, sales had dropped 9 per cent among men aged 25-40.

The Marion Hotel today Picture: SuppliedSource:Supplied

That meant pubs had to make more money from food sales, functions and accommodation.

The hotel plans to keep its operating hours the same.

“We’re also doing a lot of treatment to the facade of the hotel, because it’s well and truly past its use-by date,” McInnes said.

About 20 more ongoing jobs will be created by the upgrade, and 70 people would work on the pub’s facelift.